Research Analysts Set Expectations for AEO Q2 Earnings

Key Points

• Zacks Research cut its Q2 2027 EPS estimate for American Eagle Outfitters to $0.21 from $0.28, signaling some near-term caution on the retailer’s earnings outlook.
• The analyst firm still maintained a Hold rating on AEO, and the broader Street sentiment remains mixed with an average Hold rating and a $20.36 price target.
• American Eagle recently beat its latest quarterly expectations, reporting $0.14 EPS versus $0.11 expected and revenue of $1.20 billion, while also announcing a quarterly dividend of $0.125 per share.

American Eagle Outfitters, Inc. (NYSE:AEO - Free Report) - Stock analysts at Zacks Research lowered their Q2 2027 earnings per share (EPS) estimates for shares of American Eagle Outfitters in a research note issued to investors on Wednesday, June 10th. Zacks Research analyst Team now forecasts that the apparel retailer will post earnings per share of $0.21 for the quarter, down from their previous estimate of $0.28. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for American Eagle Outfitters' current full-year earnings is $1.76 per share. Zacks Research also issued estimates for American Eagle Outfitters' Q3 2027 earnings at $0.55 EPS, Q4 2027 earnings at $0.86 EPS, FY2027 earnings at $1.76 EPS, Q1 2028 earnings at $0.12 EPS, Q2 2028 earnings at $0.28 EPS, Q3 2028 earnings at $0.58 EPS, Q4 2028 earnings at $0.92 EPS and Q1 2029 earnings at $0.14 EPS.

American Eagle Outfitters (NYSE:AEO - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The apparel retailer reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.03. American Eagle Outfitters had a return on equity of 20.95% and a net margin of 5.01%.The company had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.18 billion. During the same period last year, the firm earned ($0.29) EPS. The firm's revenue for the quarter was up 9.7% on a year-over-year basis.

Other equities analysts have also recently issued reports about the company. TD Cowen decreased their target price on American Eagle Outfitters from $19.00 to $18.00 and set a "hold" rating on the stock in a report on Monday, May 18th. Telsey Advisory Group decreased their target price on American Eagle Outfitters from $25.00 to $20.00 and set a "market perform" rating on the stock in a report on Friday, May 29th. Citigroup decreased their target price on American Eagle Outfitters from $24.00 to $18.00 and set a "neutral" rating on the stock in a report on Monday, June 1st. Needham & Company LLC assumed coverage on American Eagle Outfitters in a report on Thursday, March 26th. They issued a "hold" rating on the stock. Finally, Bank of America decreased their target price on American Eagle Outfitters from $20.00 to $16.00 and set an "underperform" rating on the stock in a report on Friday, May 29th. One research analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $20.36.

American Eagle Outfitters Stock Performance

Shares of NYSE AEO opened at $17.57 on Thursday. The company has a quick ratio of 0.53, a current ratio of 1.55 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $2.94 billion, a price-to-earnings ratio of 10.84, a PEG ratio of 3.84 and a beta of 1.33. The stock's fifty day simple moving average is $17.17 and its 200 day simple moving average is $21.06. American Eagle Outfitters has a 52-week low of $9.27 and a 52-week high of $28.46.

American Eagle Outfitters Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be given a $0.125 dividend. This represents a $0.50 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Friday, July 10th. American Eagle Outfitters's dividend payout ratio (DPR) is 30.86%.

Insider Buying and Selling at American Eagle Outfitters

In related news, Director Noel Joseph Spiegel sold 2,887 shares of American Eagle Outfitters stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.32, for a total transaction of $50,002.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Cary D. Mcmillan sold 2,887 shares of American Eagle Outfitters stock in a transaction on Monday, April 6th. The shares were sold at an average price of $17.23, for a total value of $49,743.01. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 8.95% of the company's stock.

Institutional Trading of American Eagle Outfitters

A number of institutional investors have recently bought and sold shares of the company. Quadrant Capital Group LLC boosted its position in American Eagle Outfitters by 31.8% during the fourth quarter. Quadrant Capital Group LLC now owns 1,852 shares of the apparel retailer's stock valued at $49,000 after purchasing an additional 447 shares during the last quarter. Cambria Investment Management L.P. boosted its position in American Eagle Outfitters by 4.5% during the third quarter. Cambria Investment Management L.P. now owns 10,777 shares of the apparel retailer's stock valued at $184,000 after purchasing an additional 468 shares during the last quarter. Strategic Investment Solutions Inc. IL boosted its position in American Eagle Outfitters by 50.0% during the third quarter. Strategic Investment Solutions Inc. IL now owns 1,500 shares of the apparel retailer's stock valued at $26,000 after purchasing an additional 500 shares during the last quarter. Los Angeles Capital Management LLC boosted its position in American Eagle Outfitters by 2.1% during the fourth quarter. Los Angeles Capital Management LLC now owns 25,363 shares of the apparel retailer's stock valued at $669,000 after purchasing an additional 510 shares during the last quarter. Finally, PNC Financial Services Group Inc. boosted its position in American Eagle Outfitters by 4.8% during the third quarter. PNC Financial Services Group Inc. now owns 14,855 shares of the apparel retailer's stock valued at $254,000 after purchasing an additional 678 shares during the last quarter. Institutional investors and hedge funds own 97.33% of the company's stock.

Key Headlines Impacting American Eagle Outfitters

Here are the key news stories impacting American Eagle Outfitters this week:

• Positive Sentiment: Zacks Research raised its earnings outlook for several periods, including FY2027 to $1.76 EPS from $1.70, and also increased estimates for Q1 2028, Q3 2028, Q4 2028, Q3 2027 and Q4 2027. Higher forward earnings expectations can support the stock by signaling improved profitability. American Eagle Outfitters Free Report
• Positive Sentiment: American Eagle Outfitters declared a quarterly dividend of $0.125 per share, underscoring ongoing shareholder returns and financial stability. American Eagle Outfitters Free Report
• Neutral Sentiment: Zacks Research kept a Hold rating on American Eagle Outfitters despite the higher estimates, suggesting analysts are not yet turning fully bullish on the name. American Eagle Outfitters Free Report
• Neutral Sentiment: The company also extended and amended its $700 million revolving credit facility, which improves liquidity flexibility but is not necessarily a direct catalyst for earnings or valuation. American Eagle Extends and Amends Revolving Credit Facility
• Negative Sentiment: Zacks trimmed its Q2 2027 EPS estimate to $0.21 from $0.28, which signals some near-term margin or demand caution and could temper upside. American Eagle Outfitters Free Report

American Eagle Outfitters Company Profile

American Eagle Outfitters, Inc NYSE: AEO is a leading American specialty retailer offering apparel, accessories and personal care products for men and women. The company's flagship brand, American Eagle, focuses on casualwear including denim, tops, outerwear and accessories targeted primarily at teens and young adults. In addition to its core apparel lines, the company operates the Aerie brand of intimates, loungewear and swimwear, which has gained recognition for its body-positive marketing and inclusive sizing.

American Eagle Outfitters conducts business through a combination of over 900 brick-and-mortar stores in North America and Greater China, complemented by a growing e-commerce platform that serves customers around the globe.

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